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Abhishek Pandey, Managing Director in the Valuation Advisory practice at Duff & Phelps, was featured in an article in Business Today magazine discussing the various approaches undertaken to combat the problem of distressed assets and loans. The article titled as ‘The Bad Bank Theory’ covered the multiple approaches, their functioning and the challenges faced with each of them.
The three-point approach has been capturing the most attention. The central premise of the approach states that the asset management company overtakes the stressed assets of the banks with the funding received from the alternative investment funds. While some argue that multiple approaches need to be introduced to tackle the bad loans problem due to the snail pace of the Insolvency and Bankruptcy Code-led resolution, others feel that it isn’t the viable solution. Abhishek stated his views for the same, “In general, it is not advisable to have multiple approaches. One or two approaches are generally adopted in other parts of the world. In India, the objective of multiple approaches is to increase the realization from stressed assets.”
Read the full Business Today article here.